Gold has climbed to an all-time high as global uncertainty pushes investors toward safe assets. On Tuesday morning, the spot price reached $3,508.50 per ounce. The rally has lifted the metal by nearly a third since the start of the year.
Trade tensions drive gold higher
Gold typically gains strength when markets face instability. Earlier this year, prices jumped after President Donald Trump introduced sweeping tariffs. The measures disrupted global trade and encouraged investors to move into secure assets. Analysts also expect the US central bank to cut interest rates, increasing gold’s appeal.
Adrian Ash, research director at BullionVault, said Trump’s policies played a major role in the surge. He highlighted the impact of global trade disputes and shifting geopolitics. Ash also noted that last year’s US election added momentum to the rally.
Federal Reserve independence under scrutiny
The rise in gold also reflects growing concerns over the Federal Reserve’s independence. Trump has repeatedly criticised Fed chair Jerome Powell. He even attempted to remove governor Lisa Cook.
Derren Nathan from Hargreaves Lansdown said Trump’s pressure weakened investor confidence. He explained this pushed buyers toward safe haven assets such as gold. On Monday, European Central Bank president Christine Lagarde issued a warning. She said political interference in the Fed would pose a serious threat to global stability.
Lagarde stressed that such actions could destabilise the US and ripple across international markets.
Strong demand continues in Asia
Ash noted that gold rallies often slow when jewellery buyers in China and India step back. Both countries are major markets for gold jewellery. Normally, rising prices discourage purchases.
This time, demand remains strong. Buyers in China and India are shifting from jewellery to investment products such as bars and coins. Their continued interest sustains gold’s rise, even at record-breaking levels.
